Masan holds 83.74% stake in Vingroup’s retail arm after merger

Hai Yen

Jan 02, 2020 / 11:24 AM

Vingroup and Masan have agreed to merge some of their businesses to create “the country’s largest retail group”.

Vietnam’s major conglomerate Masan on January 1 announced its takeover of 540 million shares or a 83.74% stake in VCM Services and Trading Development, Vingroup’s subsidiary in charge of retail business, said the former in a statement.

Illustrative photo.

VCM was established last August with registered capital of VND1 billion (US$43,121), in which Vingroup holds a 64.3% stake and Deputy General Director of Vingroup Mai Huong Noi served as VCM’s chairwoman, according to VnExpress.

By mid-September 2019, VCM raised its registered capital to VND6.43 trillion (US$277.19 million) and owned a 100% stake at Vingroup’s retail arm VinCommerce.

On December 3, Vietnam’s leading privately-run conglomerates Vingroup and Masan agreed to merge some of their businesses to create “the largest retail group in Vietnam”, said Vingroup.

As a result, Vingroup’s VinCommerce and its farming subsidiary VinEco would merge into Masan Consumer Holdings, the consumer business of Masan. The latter would take charge of the new company.

Vingroup would swap its stake in VinCommerce for that of the new company and become a stakeholder.

In the announcement on January 1, Masan also issued options to receive shares of the new company that is a subsidiary of Masan, and the new company will hold share contributions of and operate both VCM and Masan Consumer Holdings.

The agreement with Masan allows Vingroup to focus on its emerging businesses namely manufacturing and technology, while Masan obtains its last piece of a puzzle to build an empire of consumer retail, eventually penetrating international markets.

The new company would own VinCommerce’s network of 2,600 super markets and convenience stores of VinMart and VinMart+ across 50 provinces and cities in Vietnam, along with a customer base of millions.

After the takeover, Masan Consumer Holdings would continue to maintain the current management policies and benefits of VinCommerce and VinEco for the two latter’s employees, suppliers and customers, plus additional benefits from Masan.

The two side are finalizing details for official signing. This is considered the largest business deal in Vietnam last year.

Vingroup exits completely from retail market

18 Dec, 21:37

This move is part of Vingroup’s restructuring process, aiming to reallocate its resources to core businesses of industry and technology to compete globally, said a company executive.

What's behind Masan-Vingroup merger?

06 Dec, 13:29

Vingroup is now able to focus on its core businesses while Masan found its last piece of a puzzle to build an empire of consumer retail.

Vingroup, Masan make largest merger in Vietnam in 2019

03 Dec, 15:25

According to the agreement, Vingroup’s retail arm VinCommerce and its subsidiary VinEco would merge into Masan Consumer Holdings, the retail consumer business of Masan.

Vietnam posts five-year high FDI disbursement as investor confidence strengthens nationwide 2025

Despite global economic and geopolitical headwinds, foreign capital flows into Vietnam accelerated in 2025, with investment increasingly concentrated in high value-added sectors, highlighting the country’s growing appeal as a stable, long-term destination for investors.

16 Dec, 10:12 PM

VN-Index set for 2,200-mark next year: JP Morgan

Vietnam’s appeal goes beyond the upgrade, driven by major economic reforms that are lifting business and consumer confidence, as well as improving profit prospects over the next three to five years.

16 Dec, 03:35 PM

Vietnam to launch smart agriculture innovation center in Lang Son

The center is expected to bridge gaps in technology testing, connect farmers with researchers and markets and accelerate sustainable, high-tech agricultural development nationwide.

15 Dec, 07:28 PM

Hanoi urged to train 100,000 digital engineers through online academy

The Capital Strategic Technology Development Forum gathered a wide range of proposals from businesses, experts and investors on how Hanoi should shape its deep-tech development agenda in the coming decades with a long-term vision to 2045.

15 Dec, 07:16 PM

Inclusive innovation must give everyone equal voice, experts say at TECHFEST Vietnam 2025

Open innovation is becoming a cornerstone of Vietnam’s development strategy, as policymakers, experts and international partners emphasize people-centered collaboration to tackle inequality, climate change and urbanization through inclusive, technology-driven solutions showcased at TECHFEST Vietnam 2025.

14 Dec, 02:17 AM